On Wednesday, the House of Representatives approved a measure amending the Money Laundering (Prevention and Prohibition) Act, 2022, to strengthen Nigeria's anti-corruption framework and improve asset recovery operations. The proposed legislation, sponsored by Hon. Yusuf Gagdi, member of the Kanke/Pankshin/Kanam Federal Constituency of Plateau State, seeks to modernize the country's anti-graft laws in response to the increasingly complex ways of financial crime.
Nigeria’s legal framework for tackling financial crimes continues to struggle due to loopholes in existing laws, weak enforcement, and persistent political interference.
Despite having numerous anti-corruption and financial crime laws, implementation remains inconsistent and largely ineffective. These shortcomings have enabled illicit financial flows to thrive, draining the country of billions of dollars annually through trade misinvoicing, tax evasion, and the looting of natural resources.
Experts caution that without stronger institutional independence and better coordination among enforcement and regulatory bodies, efforts to curb corruption and recover stolen assets will remain largely symbolic. They also stress that genuine progress depends on a stronger political will to ensure that the law applies equally to all, irrespective of social or political status.
Reforms aimed at closing legal loopholes, improving transparency, and insulating anti-graft agencies from political pressure are viewed as critical to restoring public trust and safeguarding Nigeria’s economic stability.
Leading the debate on the general principles of the new bill, Hon. Yusuf Gagdi described the fight against money laundering and illicit financial flows as “one of the most defining governance challenges of our time.” He observed that despite the framework established under the 2022 Act, significant volumes of illicit funds continue to circulate through the country’s financial and property systems using “complex methods of consignment and layering.”
According to Gagdi, the proposed amendment seeks to introduce a civil recovery mechanism that would allow the government to reclaim assets linked to unexplained wealth through non-criminal proceedings. The legislation, he explained, is designed to complement the existing criminal forfeiture process by shifting the burden of proof to individuals holding suspicious assets, requiring them to justify the legitimate source of their wealth.
The bill’s objectives, he added, include creating a clear legal basis for civil recovery orders, empowering anti-graft bodies—such as the Economic and Financial Crimes Commission (EFCC)—to apply to the High Court ex parte for restraining orders on assets inconsistent with a person’s known income, and ensuring a transparent and fair judicial process.
After extensive debate, the bill received unanimous support and passed its second reading through a voice vote conducted by the Speaker of the House, Tajudeen Abbas, who presided over Wednesday’s plenary.
